Applied Materials slashing jobs

SAN FRANCISCO—Semiconductor and solar panel production equipment maker Applied Materials Inc. will eliminate 900 to 1,300 jobs through a voluntary retirement program and layoffs, the company said Wednesday (Oct. 3).

The cuts, which will reduce Applied's total workforce by 6 to 9 percent, are being implemented as Applied invests in product development capabilities to spur, CEO Mike Splinter said in a statement.

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The job cuts are expected to make available $140 million to $190 million to use to fund key growth initiatives, Applied said.

"Achieving our strategic objectives requires us to deploy our talent in the best way possible," Splinter said.

The voluntary retirement program will be available to certain U.S. employees who meet minimum age and length of service requirements, as well as other criteria, Applied said. The company said the extent of layoffs globally would depend largely on the number of employees who participate in the in the voluntary retirement program.

Applied said it expects to largely complete the restructuring by the end of July 2013. Applied said it expects to incur charges of $180 million to $230 million, mostly for severance and other termination benefits. The company said it would begin recording these charges in the current quarter.

In August, Applied said it expected its orders to decline 25 to 40 percent sequentially in the current quarter, which closes at the end of this month. Executives said at the time that they expected orders for Applied's semiconductor business to decline 45 to 50 percent in the quarter. Related stories: